RIA M&A activity hits record pace in H1 2025: Fidelity

RIA merger and acquisition activity surged to new heights in the first half of 2025, according to Fidelity Investments’ latest biannual M&A review.

In its latest benchmarking study released Tuesday, Fidelity highlighted how this year's edition of the "race to 100 RIA M&A transactions," which it began tracking in 2023, proceeded at the fastest clip yet.

"This year, we tracked the 100th transaction on May 1, an entire month earlier [than in previous years]," Fidelity said in its biannual M&A review.

The report recorded 132 transactions totaling $182.7 billion in assets in the first half of 2025, marking the strongest start to a year since Fidelity began tracking the market a decade ago in 2015.

The momentum was especially evident in the second quarter, which saw 61 deals representing $88 billion in purchased assets. April stood out as the most active month on record for deal volume, with 26 transactions, while January and March also set new monthly highs.

June capped the half with 18 transactions and $35.8 billion in assets, up 6% in activity and 36% in purchased assets from May. However, compared to June 2024’s 19 transactions and $41.3 billion in assets, this year’s June activity remained within a historically strong range.

Fidelity’s data shows that the median deal size for the first half of 2025 held steady at $517 million, continuing a trend of consistency over the past decade.

“The median transaction has ranged from $400 million to $600 million, with 1H 2025 landing at $517 million,” the report stated. “It appears that there has been an increased appetite for all firms – large and small.”

Small- to medium-size moves in assets appear to be the fashion this season, with deals under $1 billion continuing to make up roughly 70% of the overall volume.

The report also highlighted a shift in the makeup of active acquirers. From July 2024 to June 2025, the 20 most active firms accounted for 60% of all RIA M&A transactions and 41% of purchased assets.

Focus Partners Wealth, backed by Clayton, Dubilier & Rice and Stone Point Capital, emerged as the most prolific dealmaker during the period, notching 16 deals representing $53 billion in AUM by Fidelity's tally.

Merit Financial Advisors, whose M&A strategy recently got a boost from Constellation Wealth Capital, followed closely with 13 deals, though the $4.7 billion in assets within those transactions speaks to its very different strategic focus.

All told, 14 firms remained in the top 20 dealmakers' club from 2024. The six new entrants this year were EP Wealth Advisors, CW Advisors, Cerity Partners, Lido Advisors, Beacon Pointe Advisors, and Bluespring Wealth.

Fidelity noted that several of these firms went though notable leadership and capital changes, such as EP Wealth Advisors naming a new CEO and CW Advisors being acquired by Osaic.

“Each of these strategic acquirers who are actively focused on M&A are doing so with even more rigor and aggression as the landscape remains quite competitive on the buy-side,” Fidelity noted.

The report also observed that private equity involvement continues to rise, with 86% of first-half transactions and 91% of purchased assets backed by private equity.

The field of buyers is expanding, with 64 unique acquirers in the first half of 2025 and 16 first-time buyers entering the market. These newcomers are increasingly willing to look beyond their home regions for deals, and several are backed by private equity.

The trend of minority investments is also gaining traction, with seven firms making multiple minority investments in RIAs so far this year.

Despite the record-setting pace, Fidelity suggested that the market’s growth is constrained more by the supply of sellers than by demand or capital.

“Our view lands on buyer demand remaining exceptionally strong, and that our current market is not constrained by lack of capital or interest – rather, it’s limited by supply."